U.S. stock futures were largely unchanged Tuesday night as investors checked to see if any later market momentum would continue through Wednesday.
Futures contracts for the Dow Jones Industrial Average gained 41 points, or 0.1%. Those pegged to the S&P 500 and Nasdaq 100 also rose about 0.1%.
The futures move follows a wild comeback during Tuesday market hours as the Dow and S&P 500 offset heavy losses and close slightly higher. The positive result brought the S&P 500 a five-day skid. The Nasdaq Composite, which was down nearly 4% at the time, ended up losing just 0.5%.
The rebound began after Federal Reserve Chairman Jerome Powell released his prepared remarks for a hearing before the Senate Banking Committee. The central bank chief said inflation is “soft” and the US economy is “far from our employment and inflation targets.” Bond yields had risen in recent weeks, raising fears that the Fed is changing its cautious policy stance could.
Marci McGregor, senior investment strategist at Bank of America Merrill Lynch, told Closing Bell that market sentiment indicated a need to pull back, but the general setup for stocks remained positive.
“We’re still gaining new economic expansion. We believe we are in a long-term secular bull,” said McGregor. “We heard from Jay Powell today and it sounds like he’s still on the gas.”
The general rebound in the market on Tuesday was reflected in moves by tech giant Apple and electric vehicle stock Tesla, which ended 0.1% and 2.2% down, respectively, after taking much steeper losses earlier in the day. Energy stocks and financials outperformed while technology and consumer discretion lagged behind the broader market.
Bitcoin also struggled Tuesday, falling below the $ 50,000 level.
Powell’s visit to Capitol Hill will continue on Wednesday when he addresses the House of Representatives Financial Services Committee. Investors also get another look at the construction industry with data on new home sales and an earnings report from Lowe’s.
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